Bitcoin Rises Above $81,000 as Trump’s Election Boosts Crypto Prospects
(BTC/USD) Bitcoin rises above $81,000 for the first time, driven by President-elect Donald Trump’s positive stance on digital assets and a newly pro-crypto Congress. Trump’s victory across seven battleground states, including Arizona, has sparked excitement within the cryptocurrency industry, which poured over $100 million into supporting pro-crypto candidates. This Bitcoin rise above $81,000 signals a bullish wave for the sector, setting a new record high and lifting the broader digital asset market along with it.
A Historic High for Bitcoin and Other Cryptos
Bitcoin’s upward trajectory extended to an all-time high of $81,891 on Monday, marking a 6.1% increase since Sunday. As of 5:10 a.m. in London, Bitcoin traded at $81,550, reflecting heightened market optimism. This rally lifted other cryptocurrencies as well, including Dogecoin (DOGE-USD), with notable support from figures like Elon Musk, a known Trump supporter and promoter of DOGE.
Le Shi, managing director at Auros, observed, “With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now.”
Trump’s Pro-Crypto Agenda
On the campaign trail, Trump laid out an ambitious vision to make the U.S. a global digital asset hub. His plan includes the establishment of a strategic Bitcoin stockpile and appointing pro-crypto regulators. While the logistics of a U.S. Bitcoin reserve are uncertain, these plans have fueled significant excitement in the crypto market, boosting buying pressure across Bitcoin and other digital assets.
Trump’s broader economic agenda promises domestic growth, tax reductions, and regulatory easing — all factors that are catalyzing a wave of optimism across crypto markets and the broader financial sector. Even the S&P 500 equity index (^GSPC) marked its 50th record high of the year, demonstrating the strong, pro-growth momentum Trump’s policies have generated.
Record Gains for Bitcoin in 2024
Bitcoin’s performance has been stellar throughout 2024, gaining approximately 94% since the start of the year. The rise has been aided by increasing demand for Bitcoin-focused U.S. exchange-traded funds (ETFs) and interest rate cuts by the Federal Reserve. Following the election, BlackRock Inc.’s $35 billion iShares Bitcoin Trust (IBIT) saw a record $1.4 billion daily net inflow, with trading volumes hitting an all-time high, underscoring the impact of Trump’s win on crypto investment flows.
Richard Galvin, founder of DACM, a crypto-focused investment firm, noted the effect of institutional demand on the market: “We believe a significant portion of the institutional market de-risked in the lead-up to the election and is now re-entering post Trump’s win, creating material buying pressure — this is likely to be ongoing for some time yet.”
A Shift from Previous Crypto Regulations
Trump’s win represents a stark shift in regulatory sentiment from the previous administration. Under President Joe Biden, the Securities and Exchange Commission (SEC), led by Gary Gensler, frequently warned against digital assets, highlighting instances of fraud and misconduct in the industry. This regulatory stance intensified after the 2022 market downturn and the collapse of FTX, founded by Sam Bankman-Fried. With Trump’s victory, however, the outlook for more supportive regulations has significantly improved, with optimism that Congress will pass crypto-friendly bills.
The digital asset industry played an active role in supporting candidates favorable to its interests during the election. This strategic backing of pro-crypto candidates, combined with Trump’s supportive stance, creates a promising future for crypto-focused legislation and policy reform. As Noelle Acheson, author of the Crypto Is Macro Now newsletter, wrote, “Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely.”
Stay informed with Investor Empires daily news.
Comments are closed, but trackbacks and pingbacks are open.